Category Archives: Random Blogging

Crypto-Currency! File Under WTF?

Bless Paul Krugman. His is the first explanation I can understand. 

I have been reading about Bitcoin for a couple of years–about speculation in this “crypto-currency,” about competitors who are equally “crypto,” about people who are willing to be paid for goods and/or services in this new medium.

The problem is, I can’t get my head around it.

I know that U.S. currency was originally backed by gold, and is currently backed by the full faith and credit of the United States government. (Our stability led lots of countries to “park” their assets in the U.S.–I wonder how long it will take Trump and his band of Keystone Kops to erode their trust…) I have no idea what backs Bitcoin, so I was interested in the linked Krugman column.

If you’ve been living in a cave and haven’t heard of Bitcoin, it’s the biggest, best-known example of a “cryptocurrency”: an asset that has no physical existence, consisting of nothing but a digital record stored on computers. What makes cryptocurrencies different from ordinary bank accounts, which are also nothing but digital records, is that they don’t reside in the servers of any particular financial institution. Instead, a Bitcoin’s existence is documented by records distributed in many places.

And your ownership isn’t verified by proving (and hence revealing) your identity. Instead, ownership of a Bitcoin is verified by possession of a secret password, which — using techniques derived from cryptography, the art of writing or solving codes — lets you access that virtual coin without revealing any information you don’t choose to.

It’s a nifty trick. But what is it good for?

My question exactly! (This is one of those times–multiplying in number–when I come face-to-face with the fact that the world has passed me by. Technology has eclipsed my ability to understand it…)

In principle, you can use Bitcoin to pay for things electronically. But you can use debit cards, PayPal, Venmo, etc. to do that, too — and Bitcoin turns out to be a clunky, slow, costly means of payment. In fact, even Bitcoin conferences sometimes refuse to accept Bitcoins from attendees. There’s really no reason to use Bitcoin in transactions — unless you don’t want anyone to see either what you’re buying or what you’re selling, which is why much actual Bitcoin use seems to involve drugs, sex and other black-market goods.

So Bitcoins aren’t really digital cash. What they are, sort of, is the digital equivalent of $100 bills.

Krugman explains that equivalency: neither Bitcoins nor $100 bills are used in most ordinary transactions. But hundred dollar bills are evidently popular with thieves, drug dealers and tax evaders. Unlike hundred-dollar bills, which are backed by the U.S. government, Bitcoins have no intrinsic value. Its “value” is whatever the parties to the transaction are willing to assign to it.

Combine that lack of a tether to reality with the very limited extent to which Bitcoin is used for anything, and you have an asset whose price is almost purely speculative, and hence incredibly volatile. Bitcoins lost about 40 percent of their value over the past six weeks; if Bitcoin were an actual currency, that would be the equivalent of a roughly 8,000 percent annual inflation rate.

Oh, and Bitcoin’s untethered nature also makes it highly susceptible to market manipulation. Back in 2013 fraudulent activities by a single trader appear to have caused a sevenfold increase in Bitcoin’s price. Who’s driving the price now? Nobody knows. Some observers think North Korea may be involved.

But what about the fact that those who did buy Bitcoin early have made huge amounts of money? Well, people who invested with Bernie Madoff also made lots of money, or at least seemed to, for a long time.

Krugman quotes a currency expert who describes Bitcoin as a “naturally occurring” Ponzi scheme.

I’m still pretty hazy about what Bitcoins and their competitors are, or why it takes so much electricity to “mine” them.  I’m clearly not cut out for the “brave new world” of digital money–or new and improved skullduggery.

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Predicting Outcomes? Or Producing Them?

A reader of this blog recently sent me a link to an article about prognostications, noting that its central message had application to the discussions that take place on this blog–especially in the comments.

She was correct.

The article began with a story about the author’s brother, who had been born with cerebral palsy, muscular dystrophy and other conditions that made the doctors believe he’d be unlikely to live past his first birthday; they informed the parents that there was a 95% probability that the baby wouldn’t make that birthday.

Nevertheless, year after year, the brother outlived the doctors’ predictions.

Jason’s ‘95 per cent’ wasn’t just an indifferent number. My brother’s life is evidence of the politics of probability: the life-defining feedback loop that exists between our values and the information that shapes them. What we know about the future depends, in part, on what we think is worth knowing – and what we think is worth knowing depends, in turn, on what we believe the future already holds.

Researchers who measure various physical phenomena frequently worry that the act of measuring  may affect the behavior of what is being measured, leading to inaccurate results. The author of this article has a similar concern about the act of prediction:

In other words, if a condition is thought to result in a low chance of survival, it translates into less care for the person with it. Invoking probabilities can create a fatal cycle that shapes how people understand the range of options at their disposal, and even the value of their children’s lives. Disability communities know this all too well. The idea that disability implies disadvantage is regrettably widespread, as loose talk about ‘tragedy’ and ‘struggle’ suggests. A wealth of research suggests that doctors routinely misjudge the quality of life that people with disabilities enjoy. If one judges such a life not worth living – as even Socrates ignominiously suggested – there’s no point fighting for treatment or questioning the conditions that generate the chances of success. Probability, far from being neutral, can directly contribute to injustice.

The political application of this observation is obvious: if we believe that the district in which we live and vote is “safe” for the other party, we are much more likely to skip voting; if enough of our neighbors do likewise, we have created the predicted result.

If the public response to yet another mass shooting is limited to bemoaning the “fact” that the NRA’s influence is too strong to overcome, Americans will fail to do the organizing and agitating that can counter that influence.

There has been a wake-up call prompted by the election of Donald Trump; many, many  people who previously didn’t follow political news have become aware of the “brokenness” of America’s government. If they respond with angry acceptance–if majorities of Americans believe that the country is so far down the road to corporatism and corruption that a return to more democratic, ethical governance is unlikely–then we will fail to organize, agitate and vote in numbers sufficient to effect that change.

Being human, we will always engage in prediction. But we need to be careful that we don’t act in ways that reinforce–or even bring about– our gloomiest prognostications.

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Rerun

Facebook has a feature dubbed “your memories.” A couple of days ago, it reminded me of a blog I posted a year ago about voter turnout. I have never repeated a post before, but as we count down to critically important May and November elections, I think this one is worth re-running. (It was titled, “It’s The Turnout, Stupid!”)

_____________________

Do references to “President” Trump make you wonder how we ended up with a Congress and an Administration so wildly at odds with what survey research tells us the majority of Americans want?

This paragraph from a recent Vox article really says it all:

A general poll doesn’t reflect voters very much anymore. A general poll would have had Donald Trump losing substantially and the Democrats winning the House. About 45 percent of people in general polls don’t vote at all. What you saw in the election was that Republican voters came out at a very high rate. They got high turnout from non-minority people from small towns.

There are multiple reasons people fail to vote. There is, of course, deliberate suppression via “Voter ID” laws , restrictions of early voting periods and purposely inconvenient placement of polling places.

Gerrymandering, as I have pointed out numerous times before, is a major disincentive; why go to the polls when the overwhelming  number of contests aren’t really contested?

And of course, there are the holdover mechanisms from days when transportation and communication technologies were very different–state, rather than national control of everything from registration to the hours the polls are open, voting on a Tuesday, when most of us have to work, rather than on a weekend or a day designated as a national holiday, etc.

The Vox paragraph illustrates the repeated and frustrating phenomenon of widespread public antagonism to proposed legislation that nevertheless passes easily, or support for measures that repeatedly fail. If vote totals equaled poll results–that is, if everyone who responded to an opinion survey voted–our political environment would be dramatically different.

Americans being who we are, we are extremely unlikely to require voting, as they do in Australia. (Those who fail to cast a ballot pay a fine.) We can’t even pass measures to make voting easier. I personally favor “vote by mail” systems like the ones in Oregon and Washington State; thay save taxpayer dollars, deter (already minuscule) voter fraud, and increase turnout. They also give voters time to research ballot issues in order to cast informed votes. (Informed votes! What a thought….)

If the millions of Americans who have been energized (okay, enraged) by Trump’s election want to really turn things around, the single most important thing they can do is register people who have not previously voted, and follow up by doing whatever it takes to get them to cast ballots.

Voter ID laws a problem? Be sure everyone you register has ID. Polls and times inconvenient? Help them vote early or drive them to their polling place.

Gerrymandering a disincentive? First make sure that someone is opposing every incumbent, no matter how lopsided the district, and then help people who haven’t previously voted get to the polls. Those gerrymandered district lines are based upon prior turnout statistics; on how people who voted in that district previously cast their ballots. If even half of those who have been non-voters started going to the polls, a lot of so-called “safe” districts wouldn’t be so safe.

Not voting, it turns out, is a vote for the status quo. There are a lot of Americans who are cynical and dissatisfied with the status quo who don’t realize that the plutocrats and autocrats they criticize are enabled by–and counting on– their continued lack of involvement.

If everyone who has found his or her inner activist would pledge to find and register three to five people who haven’t previously voted, and do what it takes to get them to the polls, it would change America.

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“It Depends”–But Sometimes It Doesn’t

I don’t know who Susan Hennessey is, but I think we are probably what used to be known as “kindred spirits.” The reason I came to that conclusion was the following paragraph from her post at Lawfare:

 “Much of my education has been about grasping nuance, shades of gray. Resisting the urge to oversimplify the complexity of human motivation. This year has taught me that, actually, a lot of what really matters comes down to good people and bad people. And these are bad people.”

For years, I have included some form of the following statement in my courses’ introductory lectures: You will find, during the semester, that I can be an opinionated professor. Your grade in this course absolutely does not depend upon agreeing with me. My goal is not to inculcate policy positions.  I will, however, consider that I have been a success as an instructor if, after you have taken this course, you use two phrases more frequently than you previously did. Those phrases are “It depends” and “It’s more complicated than that.” If you are better able to recognize contingency and complexity after being in this class, I will have done what I set out to do.

I have often criticized Americans’  knee-jerk, “bipolar” approach to issues, the tendency to see every debate in shades of black and white, good versus evil. We live in a world that is largely gray, with complicated problems that don’t lend themselves to solutions by way of  bumper-sticker slogans and rigid ideological mantras.

I continue to understand arguments about policy and governance that way–most of the issues we debate are what lawyers call “fact-sensitive,” dependent upon context, factual distinctions, the art of the possible. But it is getting harder and harder to ignore the fact that not every argument is nuanced, or conducted in good faith, and not every party to our ongoing national debates is honorable.

Not every conflict is between persons of good will who simply see things differently.

There really are bad people. Not people who are simply misguided, not people who just don’t understand the issue, not people who are “coming from a different place.” People who are deeply flawed, and utterly devoid of the qualities thought essential to membership in a civilized and humane society.

The challenge is to tell the difference between the people who simply see things differently and the people who are irredeemably bad. At this point–at least with respect to the gangsters in Washington–I think we have enough evidence to make a determination.

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Looking For Omens

As regular readers of this blog know, my daily posts tend to focus on the multiple problems/challenges Americans face today, especially–but not exclusively– the mounting deficiencies of our governing institutions.

Although I almost never “weigh in” on the conversations conducted by those who comment here, I am well aware (and really, quite flattered) that there are a number of very bright, knowledgable people among those who post those comments.( I also know that I have some equally thoughtful readers who rarely or never comment.)

This is a request to all of you–“lurkers” and commenters alike.

I am looking for evidence of a coming “paradigm shift”–signs that America’s culture is on the cusp of significant change for the better. Those signs, those omens, are there–even if they are less prominent, less noted, than a casual reading of the daily news might suggest. Think, for example, of the explosion in civic engagement in the wake of Trump’s election. Think of the sea change in attitudes about the LGBTQ community. Think about the growing numbers of women refusing to remain personally or politically submissive.

Think about what survey research tells us about the attitudes of the younger generation. I often say that I would turn the country over to my students in a heartbeat–they are inclusive, they care about their communities and they care about fundamental social fairness.

I’m currently working on a book, and I am looking for harbingers of positive change, for signs that we may be about to turn yet another social corner and create a better version of ourselves. If we can take our eyes off the train wreck in Washington, the economic threat posed by automation, the alternate realities facilitated by a constantly morphing and fragmenting media environment– if we can tear ourselves away from obsessing over these and other immediate social and political problems (not to mention the multiple, overwhelming threats posed by climate change) and make ourselves take the long view, I am convinced that there are many signs of human progress.

I want to know what you, my readers, see as promising indicators for the future. What are the data points that should give us some comfort and hope?

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